BY TIMOTHY REED
Despite their unique challenges, midsize companies tend to have many of the same information technology challenges as their much larger counterparts.
The IT challenges midsize organizations face today are complex, difficult to understand and often ignored. Like the boxer facing a larger opponent, small to midsize organizations should consider “punching above their weight,” taking approaches to smartly use the tools and capabilities IT now provides.
The two most common questions from CEOs are, No. 1: What should I be looking at? And No. 2: Can my team get this done? Answering both leads to an interesting perspective, one that often looks at what is happening in today”™s marketplace and what is really impacting IT delivery.
What should you be looking at? A recent McKinsey poll of senior IT executives identified the following key IT challenges faced by large organizations:
Ӣ generating more value from data;
Ӣ improving security;
Ӣ reducing the cost of existing IT assets and operations;
Ӣ supporting a growing number of end-user devices and applications;
Ӣ developing and deploying new applications; and
Ӣ migrating legacy applications to cloud infrastructures.
My view is that midsize organizations face the same challenges and may not realize they can successfully address each of these challenges. The approaches and capabilities provided by today”™s IT marketplace offer a set of rational and reasonable solutions.
Some key opportunities and examples that could be considered for each of these challenges include the following:
Ӣ Data: Think beyond the daily transaction and the data that runs your business. Consider the value of the data you collect and the possibilities when combining it with other data. Look at this incrementally. Consider crowdsourcing, what would the public want from your data?
Ӣ Security: We all need to spend more time looking at and addressing IT security. Start to look at where you could be exposed and what can be done to close gaps or implement new approaches. Like Target, you may be exposed via a vendor or service provider.
”¢ Reducing cost: There are several viable alternatives to reduce cost, across IT hardware and software. We often look at what is running today and what could be moved to the range of ”˜IT as a Service”™ delivery models.
Ӣ End user devices: In most cases, this means mobile tools. The challenge here is that most companies have built capability that is not competitive and needs to be updated. DonӪt even think about building this on your own; run to the marketplace.
Ӣ Develop and deploy new applications: Approaches to IT development have changed, offering agile approaches that can incrementally deliver capabilities, shortening the timeframe for results.
Ӣ Migrate legacy applications to the Cloud: This should be an ongoing focus. Cloud solutions are available, scalable and secure. Instead of spending resources to upgrade legacy applications, consider leveraging cloud solutions. Research our options, and take the necessary steps to migrate your applications.
In order to successfully address these challenges, the midsize organization often needs to understand their unique set of internal IT challenges, those areas within the current business model that can “get in the way” or prevent successful execution.
The midsize business model characteristics that often curtail successful IT delivery include:
Ӣ hard to justify large investments in IT systems or infrastructure;
Ӣ limited payback or ROI; the midsize firm often lacks sufficient scale;
Ӣ difficult to attract needed IT talent and a lack of expertise;
Ӣ revenue does not necessarily equate to complexity; small to midsize companies can have complex IT needs;
Ӣ tendency toward informality;
Ӣ few physical locations, but a dispersed workforce;
Ӣ constant evolution of the business model to remain competitive; and
Ӣ a growing imperative for security and disaster recovery.
Failing to address these challenges manifests itself in two areas: primarily in disappointing or failed IT projects; and in a reluctance to take advantage of new IT models and trends.
There is light at the end of the tunnel. Recognizing your IT challenges is the tough part. You can address each item with a realistic approach, one that delivers capability and meets expectations. In most cases, the small and midsize organizations can face their IT challenges and move forward successfully, punching above their weight.
Timothy E. Reed, CEO at Fairfield County-based ReedITC, has worked at Ernst & Young, General Motors and McGraw-Hill. He and his team deliver IT and operation transformation. ReedITC founded the Linkedin group “IT and Operations Transformation,” the largest global group focused on IT and ops transformation; it is a member of the Connecticut Technology Council and is active in tech forums.
